Learn the trade here. Make it on tradeMONSTER

Options Trading News

March 20, 2013  Wed 8:32 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Do you think that the Fed is going to back away from its bond-buying program today? Do you believe that the Russians are going to pull out every red cent from Cyprus tomorrow? (The deposits will already be taxed before they take them out, so they will pull out AFTER the tax.) If your answer is yes, then right now is the time to sell.

Do I think you should do it? I am cognizant that when the European Central Bank says it will provide liquidity it recognizes that the Cypriot banks will be nationalized almost immediately and will be wound down with tremendous losses to, yes, the ECB. That's the bearish scenario that makes the Fed irrelevant.

TheStreet.com logoI think that the ECB recognized--as did the International Monetary Fund when it came up with this plan--that every penny would come out of the banks when they open and that they have some contingency plan. But if you think they don't have one, don't just stand there, obey the bears and roll out.

I reiterate that I don't like the tape. I reiterate that I don't like that we have seen parabolic moves, and I do worry about Cyprus and the Fed.

But I think that when we look back, it might not be the watershed moment or two that people tell me I should be more fearful of. As stupid as the policy makers in Europe are, can they reach the same conclusions as the bears and act to save the situation and Uncle Ben?

I have trusted him for four years, and I am not backing away now.
Share this article with your friends


Related Stories

SPX

Stocks bullish as Alibaba debuts

September 19, 2014

The bullish momentum remains intact this morning, bolstered by the e-commerce giant's initial public offering later today and Scotland's decision to remain in the United Kingdom.

SPX

Quiet calendar through next week

September 19, 2014

Existing home sales are the main item for Monday's session. Preliminary manufacturing numbers are due for China overnight, followed early the next session by similar European data.

SPX

Futures advance on easy money

September 18, 2014

S&P 500 futures are up 0.4 percent, while most European markets are up 0.5 percent to 1 percent. Asia was mixed overnight, with India ripping almost 2 percent and Japan gaining more than 1 percent.

SPX

Scottish vote, housing data on tap

September 18, 2014

Today's calendar has several events, including the Scottish independence vote. Final results aren't due until later this evening, though the outcome could be known earlier.

SPX

Stocks little-changed before Fed

September 17, 2014

S&P 500 futures are within a point of yesterday's close, and commodities are flat. Overseas markets are higher, led by gains of 1 percent in Italy, Hong Kong, and Korea.

Premium Services

Free Webinars

Swing Trading w/ Jon Najarian and Ron Ianieri

Education & Strategy

Make your rules, and stick by them!

New traders often act on the recommendations of others or on gut feel. But that is a quick way to...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER